» It notes that Grupo enerpro, a privately held Spanish company, developed and conected the country´s first unsubsidized 1MW utility-scale solar proyect to the grid and it plans to develop 10 further proyects in 2004.»

HSBC says there are a bunch of reasons for solar’s strong showing: a combination of favourable policy initiatives in key markets, increased investment flows (public market investment doubled to $US6.3 billion in 2013) , and stabilisation of prices of solar panels and attractive valuations. All of which have contributed to a supportive base for investors.

The over-riding theme – though – is that of grid parity. As HSBC notes, the price of solar continues to move further towards
grid parity – at utility scale, not just at the socket – in many regions, making the technology more affordable and viable with
less support from governments. That means it can continue to grow even when subsidies are finally removed.

Despite all this, HSBC says solar stocks still look attractive – and offers an upside potential of 61 per cent based on long term relative price. In the graph to the right, the red line shows the potential upside on its trend adjusted price earnings estimates, while the grey line shows the upside based on its price-tobook valuations. Both are key metrics in the financial analysts world.
HSBC says another key factor is that finance for the solar market and the deployment of modules is being lubricated by the
issue of “green bonds” and the floating of numerous “yield companies”, which offer attractive rates of return for investment
in solar projects. The solar market is forecast to grow 16 per cent a year, and the 12-month forward consensus earnings growth forecast for Global Solar is 87 per cent; driven mainly by 247 per cent earnings growth forecast for Asia Pacific ex Japan and 153 percent for the Asia-Pacific.

HSBC notes that while in 2013, its climate change index was dominated by the energy efficiency and energy management
sub-sectors, it is the low carbon energy production index that has taken the helm in 2014.
Apart from solar, the wind index has delivered a return of 16.5 per cent so far in 2014, while other renewables including
Diversified Renewables and Hydro/Geothermal/Marine are up 9.9 per cent and 8.9 per cent, respectively.

Finally, Australian readers might be wondering, where is the opportunity for investors in Australian stocks? Well, good luck with that. No Australian stock marked the HSBC solar index. In fact, no Australian stock makes the HSBC climate change index – despite the fact that the Asia-Pacific region is the fastest growing, and best returning geographical region of its global index. As an investment slogan it might best be described as “Missed the Boat.”

Unsubsidized solar power gives it a go in spain

Spain’s recent history with solar power has been nothing if not tumultuous. Generous subsidies created a booming market in2008(http://online.wsj.com/news/articles/SB125193815050081615), but the economic crisis brought a quick end to that. And nowthe country is pulling the rug out (http://nytimes.com/2014/01/06/world/europe/spains-solar-pullback-threatenspocketbooks.html) from under thousands of solar producers, many of them small, whose financing depended on the promise of those generous subsidies.

So is it a completely hopeless mess? Greenpeace says it might not be. The organization is pointing to a new utility-scale plant in Seville
that is going into service “getting the same reward as any conventional power plant,” with “no subsidy, no feed-in tariff.”

Jose Luis Garcia, who focuses on climate and energy for Greenpeace Spain, said in a recentpiece(http://www.greenpeace.org/newzealand/en/blog/subsidy-free-solar-takes-off-in-spain/blog/48113/) that the economics of solar power have indeed shifted – in a good way.

“Solar energy is running through its learning curve much quicker than anyone could have anticipated,” Garcia wrote. “Andsubsequently, the need for new plants to get economic support has become lower and lower. Today a solar panel costs some 80 percent less than just five years ago to yield the same power. And costs are projected to lower by another 50 percent by 2020.”

According to data from Red Electrica de Espana [PDF(http://www.ree.es/sites/default/files/downloadable/preliminary_report_2013.pdf)], there
was 4,681 MW of solar PV capacity in Spain as of the end of 2013, and it generated 8,937 gigawatt-hours of electricity, or 3.2 percent of total electrical demand. Another 2,300 MW of solar thermal provided 4,554 GWh, or 1.8 percent of the total demand. Wind made up 20.8 percent of total demand, so a boost in solar PV would help Spain balance its renewable portfolio.

The Seville plant is big but not huge – 2.5 megawatts. But the company behind it, Enerpro (http://english.grupoenerpro.es/), has a roster of 1-MW projects lined up in the near term that will total another 12 MW , along with more ambitious projects planned for further down the road.

Meanwhile, Greenpeace says the Spanish grid operator is sitting on 40,000 MW of planned PV plants that “are waiting or procedural green light to access the grid, while their investors are valuing the fact that electricity from the new PV plants can now compete in the market without any support system to make the investment profitable.”

Whether that will come to pass or not in the topsy-turvy Spanish solar market, well, we’ll be watching closely to see. If it does, it will be
a strong, positive signal for solar’s long-term future, in Spain and elsewhere in Europe.

 «In Spain, for example,  Project developer Grupo Enerpro, has just connected to the grid the conuntry´s first utility-scale solar farm to be built without public subsides.»

Last week in New York, the information provider Bloomberg (/companies/bloomberg/) unveiled a new product, a tool to allow investors to calculate how much of their money is tied up in assets that are “stranded” because they are carbon-intensive and therefore likely to be hit by tighter regulations, carbon prices or other constraints.

The move reflects the increasing concern of investors that climate change, and in particular the measures that governments will take to tackle it, could create a whole new class of stranded assets. The danger is that the coal, oil or gas reserves that make up the bulk of some companies’ valuations are not as valuable as companies or investors think because they will not be allowed to exploit them.

 The first solar plant which publicly claims to reach generation parity in Europe has been connected to the grid in Seville.

First solar generation parity project in Spain plugged in

The first solar plant which publicly claims to reach generation parity in Europe has been connected to the grid in Seville (http://energiasrenovables.com/articulo/la-primera-planta-fotovoltaica-de-espana-sin-20131129/goback=%2Egde_4570098_member_5812985795614638083 )

Spain.The diminutive 2.5 MW Enerpro plant is being built in Marchena and meant as a demonstrator project, according to the firm. It may befollowed by a second 300MW plant.

The news comes after study by Deutsche bank argued most of the world’s (http://breakingenergy.com/2013/09/05/deutsche-bank-says-solar-isapproaching-grid-parity/) solar market would produce power at close to wholesale prices within two years.
Projects are expected to compete with fossil fuel prices in India and Italy

(http://thinkprogress.org/climate/2013/03/03/1664481/solar-report-stunnerunsubsidized-grid-parity-has-been-reached-in-india-italy-with-more-countries-coming-in-2014/) , as well as Spain.However solar installations in (less sunny) Germany fell dramatically last year  amidst uncertainty over EU’s renewables sector as EU wind installations also fell back. Between 2007-8 significant subsidies saw Spain install more solar than any other country on earth, during the same period panel prices fell and performance improved. (http://oilprice.com/Latest-Energy-News/World-News/Spain-Achieves-Grid-Parity-for-Solar-Power.html)

Grid parity

Grid parity (http://breakingenergy.com/2013/09/05/deutsche-bank-says-solar-is-approaching-grid-parity/) at a domestic level has been going on for a while now in Spain – where the price of people generating their own solar has been at cost parity with the consumer price of electricity from the grid.
But this new solar plant, being built by Spanish independent energy company Grupo Enerpro (http://english.grupoenerpro.es/) , is the first to be built to supply electricity directly to the grid without separate subsidies. It will supply electricity at ‘pool’ prices, meaning the price at the wholesale market.In a statement the firm (http://www.energias-renovables.com/articulo/la-primera-planta-fotovoltaica-de-espana-sin-20131129/? goback=%2Egde_4570098_member_5812985795614638083) claimed that falling solar panel prices as well as rising wholesale power prices made the development economic.“The development of PV projects in Spain without premiums is now a profitable business,” said the firm.The company – which didn’t reveal the initial scale of its investment -suggested it had more ambitious plans for the coming years.
The company plans to go ahead with building a 300MW solar plant without subsidies.

Solar tariff cuts

In late 2012, solar developers – including Gestamp Renewables and Solaria Energia Medio Ambiente
(http://www.bloomberg.com/quote/SLR:SM) – put in around 200 bids for permits to connect to the Spanish electricity transmission system (http://www.bloomberg.com/news/2012-12-21/first-large-solar-plants-without-subsidy-sought-in-spain.html) operator Red Electrica de España’s grid. These bids represent 40,000 MW of solar plants (http://www.energiasrenovables.
com/energias/renovables/index/pag/revista_sumario/botid/591/revid/591/colright/revista_sumario/tip/revista_

sumario/title/Sumario%20de%20la%20revista%20energ%C3%ADas%), which are still waiting for the approval.
However, many developers have cancelled their plans after the government’s energy reforms introduced last year, according to news agency
EuropaPress (http://www.pv-magazine.de/nachrichten/details/beitrag/enerpro–cerca-de-poner-en-operacin-2-5-mw-al-pool-en-espaa_100013319/) .
In July last year the Spanish government approved measures to tax and limit solar generation, including putting an end to the country’s feedin tariff scheme following a policy turnaround taking shape since 2010 (http://www.nytimes.com/2013/10/09/business/energyenvironment/ renewable-energy-in-spain-is-taking-a-beating.html?_r=0) .
The reforms included (http://www.pv-tech.org/news/iberdrola_says_crippling_spanish_solar_reforms_dont_go_far_enough) a retroctive cap of 5-5.5% after tax on progit margins of PV projects, and obliging people who had installed panels for their own electricity use to buy it at an above market rate tariff, or facing fines.The government says the reforms are designed to limit the cost of clean energy. The moves were welcomed by Iberdrola, the Spanish utility giant, which has argued the reforms don’t go far enough (http://www.pvtech.org/news/iberdrola_says_crippling_spanish_solar_reforms_dont_go_far_enough) .
Spain’s National Association of Photovoltaic Energy Producers is calling for a national referendum (http://www.pvmagazine.
com/news/details/beitrag/spanish-solar-industry-demands-national-referendum-on-energy-policy_100014097/#ixzz2sLweyVZV) to address the country’s energy model amid an outcry from solar developers and householders that invested in solar panels in more favourable times   (http://www.nytimes.com/2014/01/06/world/europe/spains-solar-pullback-threatens-pocketbooks.html) .

Nota de prensa de «Energiza» donde se menciona la primera planta fotovoltáica sin primas de Grupo Enerpro.

El desarrollo de proyectos FV en España sin primas es ahora un negocio rentable y una interesante oportunidad  de inversión la  caída espectacular de los costes de desarrollo y construcción que se ha producido en los últimos 10 años, junto con la tendencia al cista a largo plazo del precio de la electricidad en el mercado libre.

Grupo Enerpro conectará la primera semana de diciembre la primera planta de energía solar fotovoltáica de España sin primas, que se ubicará en la provincia de Sevilla. Según indica la empresa en una nota, se trata de la primera de las fases de un proyecto de 2,5 MW en municipio de la provincia de Sevilla.

Esta planta Fv venderá toda su energía directamente en mercado libre de electricidad (el llamado «pool»)sin recibir prima u otra forma de subvención oficial alguna.

Este proyecto FV es parte de un total de 10 MW de proyectos pequeños que el grupo Enerpro planifica desarrollar y construir los próximos meses. A la vez desea terminar el desarrollo e iniciar la construcción de la primera planta FV sin primas de gran tamaño en España.

Grupo Enerpro asegura que es la única empresa en España que tiene proyectos FV sin primas en un avanzado estado de desarrollo y una primera central conectada a red en estas condiciones.

Desde hace más de 7 años ENERPRO trabaja para hacer posible que la energía solar sea una realidad en el sistema energético nacional y convierta el sol en uno de los ejes principales de obtención de energía. Trabaja en todo el ámbito nacional en un desarrollo global de todas las necesidades que pueda suscitar este joven sector aunando experiencia y capacidad técnica. La construcción de plantas de producción de energía fotovoltaica ha convertido a ENERPRO en una empresa referente a nivel nacional y a su vez en un equipo altamente preparado para llevar a cabo todas las labores de mantenimiento que garanticen el máximo rendimiento en la explotación de los recursos de las instalaciones.